Market Analysis: Bullish Signals for GDX?
Tim Ord | Jul 19, 2018 12:28AM ET
- SPX Monitoring purposes; Sold 7/11/18 at 2774.04=gain 2.05%; Long SPX 6/29/18 at 2718.37.
- Monitoring purposes Gold: Long GDX (NYSE:GDX) on 7/6/18 at 22.61
- Long Term Trend SPX monitor purposes; Sold long term SPX 7/16/18 at 2798.43= gain 2.95%; Long 6/29/18 at 2718.37.
Second window up from the bottom is the Advance/Decline with a 4 period moving average. Reading below 1.25 has been a bearish sign for the SPX. Next window up is the Advancing issues with 4 period moving average and Declining issues with a 4 period moving average. When the blue line is less than red line can lead to declines and vice versa, right now both lines are about equal, which is neutral. Have not recorded panic in the combination of the Tick and TRIN that would suggests a bottom in the market. Today’s candlestick pattern could be a “Bearish last engulfing” which is a bearish pattern. Being patience for now and will wait for the next setup. August and September could see weakness in the markets as seasonality is bearish in that time frame. Sold 7/11/18 at 2774.04=gain 2.05%; Long SPX on 6/29/18 at 2718.67.
The McClellan Oscillator closed today at -24 and remains below “0”. The July option expiation has a probability of 51.42% of being higher, and seasonality is bullish into mid July. Have said that, we where looking for panic in the tick and trin the last few days to generate energy to drive the market to fill the January and February gaps just above the current SPX price. The middle window is the TICK/TRIN ratio. Bottoms in the market form when the TICK/TRIN ratio reaches below -150 and we don’t have that here. Staying neutral for now. Ask for free 30 day trial.
Get The News You Want
The middle window is the GDX/GLD ratio. Bullish signals for GDX can be triggered with the GDX/GLD ratio. A rising GDX/GLD ratio shows that gold stocks are stronger than gold and a bullish condition for both gold stocks and gold. A bullish signal is triggered for GDX when the RSI for GDX/GLD ratio closes above 50 and a bearish signal when close below 50. A bullish signal was triggered back in early April and since then GDX has just moved sideways. The RSI gained ground form yesterday (closed yesterday 50.91) closed today at 56.78 and remains on a bullish signal. The ratio is acting unusual and may be signaling that something new is about to happen to the current market conditions. If GDX/GLD ratio RSI weakens in the coming days and falls below 50 could jeopardizes our long position in GDX. Long GDX on 7/6/18 at 22.61.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.